The Nelson Oil company estimated that the oil reserve it acquired in 2016 would produce 4 million barrels of oil. The company extracted 300,000 barrels the first year, 500,000 barrels in 2017, and 600,000 barres in 2018. Nelson paid $32,000,000 for the oil reserve. a. Compute the depletion expenses for each year 2016,2017,2018b. Prepare the journal entries to record I. acquisition of the oil reserve and Ii. The deletion for 2016

The Nelson Oil company estimated that the oil reserve it acquired in 2016 would produce 4 million barrels of oil. The company extracted 300,000 barrels the first year, 500,000 barrels in 2017, and 600,000 barres in 2018. Nelson paid $32,000,000 for the oil reserve. a. Compute the depletion expenses for each year 2016,2017,2018b. Prepare the journal entries to record I. acquisition of the oil reserve and Ii. The deletion for 2016

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Description: The Nelson Oil company estimated that the oil reserve it acquired in 2016 would produce 4 million barrels of oil. The company extracted 300,000 barrels the first year, 500,000 barrels in 2017, and 600,000 barres in 2018. Nelson paid $32,000,000 for t

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 29CE

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